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U.S. agencies investigate Merck, Lilly drug pricing

U.S. drugmakers Merck & Co and Eli Lilly & Co are being investigated by federal prosecutors over their drug-pricing practices, the companies disclosed.

The exact nature of the investigations and where they might lead was not immediately clear.

Lilly, in an Oct. 30 regulatory filing, said the Philadelphia U.S. Attorney’s Office and the civil division of the U.S. Department of Justice are investigating its distribution agreements with wholesalers. The agreements are used to determine Average Manufacturer Prices that are the basis of required rebates to the Medicaid healthcare program.